In response to the warnings by SCM Private about robo advice, the FCA has already been warned – in our case via the FAMR.
Whether it works or not (that is important to note, as I have an open mind), the costs of setting it up, regulation and compensation must be met solely by those who wish to work in this market and in no way paid for by the advisory community.
Just one concern regarding the lack of regulatory vigilance: there is a huge body of evidence that states that people interact differently via computers and tablets than through human contact. How many times, for example, have you clicked a button saying “I agree to the terms and conditions” without reading them? The FCA has not conducted any study into this vital aspect.
Sam Caunt
Director,
Moerae Life Financial Planning,
Northampton
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